(IND) The Federal Highway Administration Releases Model Contract Guide for P3s

The Federal Highway Administration has issued a draft model contract guide for states considering P3 toll-way projects and will receive public comments on the guide until March 10.

The model contract consists of seven contractual provisions critical to achieving public sector.  Issues addressed in this draft guide include: Tolling regulation (The right to charge tolls; how tolls are set); Revenue Sharing (Approaches to sharing of “excess revenues or profits” between concessionaires and a public owner for projects that produce revenue); Supervening Events (Types of contractual relief typically granted for unforeseen events, and compensation as required); Changes in Law (How changes in law, after a contract has been in effect, will be dealt with); Changes in ownership (Restrictions on transfers and permitted transfers); Default, early terminations and compensation (How the various types of terminations and default events are to be treated); and Hand-back (Issues related to the hand-back of facilities on contract termination).

The draft Core Toll Concessions Model P3 Contract Guide examines these key issues in an effort to educate states that may decide to enter into P3 contracts, according to the Jan. 30 Federal Register.